The Biggest Businesses in Lebanon Introduced

Lebanon is located at the junction of three continents and promotes a competitive free-market economy. It has a well developed legal system, a good supply of skilled workers and offers numerous investment prospects. This makes it attractive for many large companies to set up headquarters in the country.

Until 2006, when Beirut's reconstruction was near completion, there were increasing numbers of tourists pouring into the country's resorts and tourism was a major industry. However, the inception of the month long war between Israel and Hezbollah caused major damage to the basic infrastructure. Despite this drawback, the country's rigidly regulated financial system managed to steer clear of the 2007 to 2010 global recession and benefited from a 9% economic growth. In addition to a thriving financial sector, Lebanon is growing in many different sectors including tourism.

The largest bank in Lebanon is the Bank Audi Saradar, also called Audi Saradar group. The bank offers its services mainly in Lebanon and the Arab world in general, in addition to North Africa. Besides general banking, it also provides insurance business via its subsidiary LIA Insurance Sal.

Solidere is the biggest construction and real estate company. The business is involved in the reconstruction of Beirut's business district which was damaged during the civil war. The company came into inception in 1994 and has a special relationship with the government. Solidere is largely credited with helping Lebanon recover after the civil war and in the economic success of the country; hence, the company is held in high esteem. Its major developments include Beirut Souks Mall, Platinum Tower, and Marina Towers to name a few.

INDEVCO is the largest manufacturing company with almost 50 subsidiaries primarily dealing with producing packaging and paper products. It is the owner of more than 30 plants in Lebanon and employs over 7,500 people round the world.

MEDCO is the mediterranean oil shipping and transport company, another one of the largest Lebanese companies. It essentially deals in oil industry and production of energy and fuel. MEDCO has over 250 service stations in Lebanon. The company came into existence in 1969, but its origins can be traced back to 1910.

Lebanon enjoyed 4% GDP in 2010 and has an estimated inflation rate of 3.5%. Lebanon imposes no restrictions on the movement of funds across its borders and foreign investors are allowed to own businesses and assets without any restrictions. Also, the government does not require that investments be made in any specific areas or projects. All these points make the country an inviting place for international investment. The European Union is Lebanon's largest trading partner.

Besides the above mentioned business, there are a number of other sectors which offer good prospects. Lebanon has the basic infrastructure, but needs to become a regional center in information and communication technology. The Telecommunications Regulatory Authority and the Ministry of Telecommunications are in the process of launching broadband for all its citizens. A new market for broadband licenses opened in 2010. There are two mobile phone carriers and options to privatize them are being considered. These are major opportunities for foreign investment.

Lebanon is a huge importer of pharmaceutical drugs and has over 50 firms importing pharmaceuticals. Due to the fact that the local pharmaceutical industry is feeble, the imported pharmaceuticals are responsible for 90% of the spending. While government testing facilities are lacking and there is no criteria to differentiate between innovative and generic medicines, the field does have investment opportunities.

Lebanon offers an open and tolerant insurance market. There is no competition between the government and private insurers. It is predicted that the market for all types of policies is set to increase in the coming years, particularly, health and life. Additionally, due to the huge number of ongoing reconstruction projects, policies dealing with construction are in great demand.

The Council of Ministers has declared that they will continue privatizing according to the existing regulations. Some privatization projects include Liban Telecom, the electricity sector, the country's national airline, and the water sector, in addition to some others.

Due to the fact that the domestic financial sector is carefully shielded from external influence and financial risks, Lebanon has enjoyed relative economic security. This has also helped to build foreign investor confidence. Companies from U.S., France, Italy, Germany, Britain, Korea and China are already operating in Lebanon. While Lebanon has many favorable points, there are some drawbacks as well. The country is facing a large public debt and external financing needs.